Microsoft Q3 FY11 results: 360 revenue up 69% to $712M

Thursday, 28 April 2011 21:43 GMT By Stephany Nunneley

Microsoft announced third-quarter revenue of $16.43 billion for the quarter ending March 31, 2011, which is a 13 percent increase year-over-year.

Net income for the quarter came in at $5.23 billion, which represented and increase of 31 percent compared to the prior year.

“We delivered strong financial results despite a mixed PC environment, which demonstrates the strength and breadth of our businesses,” said CFO Peter Klein. “Consumers are purchasing Office 2010, Xbox and Kinect at tremendous rates, and businesses of all sizes are purchasing Microsoft platforms and applications.”

The Entertainment and Devices Division, which includes Xbox 360, XBL, and Kinect, grew 60 percent year-over-year, which Microsoft attributed to Kinect, calling it “the fastest-selling consumer electronics device in history.” Continued strong sales of Xbox 360 and XBL were also attributed, with XBL revenue “exceeding subscription revenue,” according to Microsoft’s general manager of investor relations,Bill Koefoed.

Xbox 360 platform revenue grew $712 million or 69 percent, led by sales of Kinect. The firm shipped 2.7 million Xbox 360 consoles and 2.4 million Kinect sensors (including those sold with consoles) during the third quarter of fiscal year 2011, compared with 1.5 million Xbox 360 consoles during the third quarter of fiscal year 2010.

EDD revenue grew $2.4 billion or 52 percent led by sales of Kinect sensors, increased volumes of Xbox 360 consoles and video games sold, and higher Xbox Live revenue. The firm shipped 11.9 million Xbox 360 consoles and 10.4 million Kinect sensors (including those sold with consoles) during the first nine months of fiscal year 2011, compared with 8.8 million Xbox 360 consoles during the first nine months of fiscal year 2010.

Xbox 360 video game revenue increased primarily reflecting sales of Halo Reach and Kinect game titles, and it expects growth in the Xbox 360 division to continue and more will be revealed at E3 in June. Hopefully the firm will clarify that last bit during the conference call.

Microsoft’s preliminary figures for fiscal year 2012 see the firm expecting a 5 percent increase during the mid-point of fiscal year 2011, or $28.6 billion.

A call to investors will be broadcast live at 5.30pm EST, which is in about an hour. We will listen in and report back to you if anything interesting is noted.

Until then, if you are into financial statements, you can look over MS’s SCE filing here.

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